Jet Airways confirms probe by Registrar of Companies

A media report earlier in the day said the RoC has ordered a “formal inspection of Jet Airways”.

ET Bureau|

Aug 30, 2018, 10.19 PM IST

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Agencies

Jet’s senior management last month took pay cuts by as much as a quarter. The company requested its pilots and technicians to take similar cuts but was refused.

Jet Airways Thursday said it has received communication from a body of the ministry of corporate affairs seeking clarifications in response to a complaint received by it.

“Jet Airways has received communication from the office of Registrar of Companies seeking comments/ clarifications and explanations in response to a complaint received by their office. The Company is taking necessary steps to submit its response in this regard,” said a spokesperson at the airline, without elaborating.

The Registrar of Companies (RoC) takes care of company registration in India, completes reporting and regulation of companies and their directors and shareholders, and also oversees government reporting of various matters including the annual filling of various documents.

A media report earlier in the day said the RoC has ordered a “formal inspection of Jet Airways”. It added that the RoC has filed a preliminary report with the ministry of corporate affairs, based on which the ministry has authorised inspection under section 206 (5) of the Companies Act 2013. The law vests it with the power to call companies for information, inspect their books and conduct enquiries.

The report cited an unnamed government official as saying that the RoC in its preliminary report has found substantial grounds for further investigation against Jet and a detailed enquiry into its books of accounts. It said it is probing allegations of money laundering at Jet.

In response to a similar earlier media report, Jet had on August 20 told the exchanges that it had received no letter from the ministry.

This is the latest in a line of headwinds that the financially stressed airline has had to tackle in the last one month.

Jet’s senior management last month took pay cuts by as much as a quarter. The company requested its pilots and technicians to take similar cuts but was refused. News that it had given 60 days to its employees for survival sent its shares to a three year low. Jet denied the same.

Meanwhile, the chief of India’s biggest lender State Bank of India said the airline was on its stressed loans list. Jet reacted with a denial. Later Jet deferred its earnings announcement saying its auditors hadnt presented them to the board. It later clarified it had sought more time from them.